The report, titled "PG Electroplast in Limelight After Red Flags in Financial Health Raise Warnings," claimed that the firm faced rising leverage, weakening cash flows and growing debt commitments. It suggested that these issues could put pressure on the company’s liquidity and long term stability.
The article triggered fresh scrutiny from investors and led to the stock’s decline. PG Electroplast later issued a detailed clarification, calling the claims “factually inaccurate and misleading.” The company said it is a net cash firm with cash levels higher than debt for the past 12 months. It added that its liquidity position remains strong and that its audited financials clearly reflect this.
The company said it has posted profits in both quarters of FY26 so far and continues to have one of the strongest operating margins in the sector. It also reaffirmed its full year guidance of Rs 5,700-5,800 crore in revenue and Rs 300-310 crore in profit.
PG Electroplast has asked the domestic broker to review the article, correct the errors and issue a clarification. It warned that unverified research can mislead investors and may violate SEBI norms.
The firm is yet to receive a response and said it may pursue legal or regulatory action if needed. It will update stakeholders once it hears back.
PG Electroplast is one-stop solution provider for Electronic Manufacturing Services (EMS) and contract manufacturing to most leading consumer durable and electronics brands in India.
On a consolidated basis, PG Electroplast's net profit declined 85.72% to Rs 2.76 crore while net sales declined 2.37% to Rs 655.37 crore in Q2 September 2025 over Q2 September 2024.